Residential repair and remodeling building materials distributor Builders FirstSource reported its fourth quarter and full year 2025 financial results on Feb. 17, which reflected continued considerable sales declines amid ongoing housing market challenges.

2025

The full yeat figures were highlighted by BLDR’s 2025 sales of $15.2 billion that fell 7.4% annually, with gross profit of $4.6 billion down 14.3% and gross margin of 29.8% that fell 250 basis points. Net profit of $435 million fell 60.4% annually; adjusted EBITDA of $1.58 billion sunk 32.0% and adjusted EBITDA margin fell by more than 380 bps to 10.4%.

4Q25

In the fourth quarter, BLDR’s sales of $3.4 billion fell 12.1% year-over-year, reflecting a 14.0% decline in core organic sales and commodity deflation of 1.9%, partially offset by a 3.8% benefit from acquisitions. Gross profit of $1.0 billion fell 18.0%; gross margin of 29.8% fell 250 bps and net profit sunk 83.4% to $31.5 million. Adjusted EBITDA of $275 million fell 44.3% as margin of 8.2% fell by 470 bps.

The 4Q25 core organic sales decline was comprised of a 20.4% decline in Multi-Family; 15.4% decline in Single Family; and 6.5% decline in Repair and Remodel/Other. 

All annual and year-over-year declines were primarily attributed to a below-normal housing starts environment.

2026 Outlook

For the full year, BLDR expects 2026 net sales to be $14.8 billion to $15.8 billion; gross margin of 28.5-30.0%; adjusted EBITDA of $1.3 billion to $1.7 billion on margin of 8.8-10.8%.

BLDR expects Single Family and Multi-Family starts to be flat across the geographies it serves, and Repair & Remodel/Other to be up 1%. Meanwhile, acquisitions completed in the last 12 months are expected to add net sales growth of about 1%. Total capital expenditures are expected to be $250 million to $300 million.

BLDR has approximately 585 locations across 43 states.